The insurance policy is a contract relating to the insurer and your insured, known as the policyholder, which determines the claims how the insurer is legally needed to pay. In exchange with an initial payment, often known as the premium, the insurer promises to fund loss caused by means of perils covered underneath the policy language. Insurance contracts are made to meet specific needs therefore have many features not obtained in many other varieties of contracts. Since insurance coverage are standard varieties, they feature boilerplate language which is similar across many different types of insurance policy.